This document discusses a study on the funds flow statement of EN EN Electrical Engineers Private Limited over a 5-year period from 2017 to 2021. It includes analysis of changes in working capital, sources and applications of funds, and funds from operations for each year. The objectives are to study changes in working capital, analyze funds from operations, and understand sources and applications of funds. Various financial statements and tools like ratio analysis are used to analyze the funds flow. The study finds an increase in working capital each year and identifies the main sources and uses of funds.

1. International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 6 Issue 6, September-October 2022 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD51919 | Volume – 6 | Issue – 6 | September-October 2022 Page 575
A Study on Funds Flow Statement at
EN EN Electrical Engineers Private Limited Anantapur
T. Amrutha Varshini1
, Dr. B.C. Lakshmanna2
1
Student, 2
Assistant Professor,
1,2
School of Management Studies & JNTU, Anantapur, Andhra Pradesh, India
ABSTRACT
Fund flow statement is a statement showing sources and application
of funds for a period of time. Fund flow statement is one of the
valuable tools in the hand of management to evaluate the uses of
funds by the organization and in determining how funds are used.
Fund flow statement is statement which discloses the analytical
information about the different sources of fund and the application of
the same in the specific accounting cycle. In other words, it
incorporates those transactions which change either the amount of
current assets or current liabilities (in the form of increased or
decreased working capital) or fixed assets, long-term loans and
equity capital. Fund flow statement is also called the 'Statement of
Sources and Application of Fund 'Movement Funds Statement’. Fund
flow statement attempts at providing a link in the completion of final
statements. Fund flow statement is a statement in summary form that
indicates the changes occurring in items of financial condition
between two different balance sheet dates.
How to cite this paper: T. Amrutha
Varshini | Dr. B.C. Lakshmanna "A
Study on Funds Flow Statement at EN
EN Electrical Engineers Private Limited
Anantapur" Published in International
Journal of Trend in
Scientific Research
and Development
(ijtsrd), ISSN:
2456-6470,
Volume-6 | Issue-6,
October 2022,
pp.575-583, URL:
www.ijtsrd.com/papers/ijtsrd51919.pdf
Copyright © 2022 by author(s) and
International Journal of Trend in
Scientific Research and Development
Journal. This is an
Open Access article
distributed under the
terms of the Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)
INTRODUCTION
A FUNDS FLOW STATEMENT is a financial
statement that analyses a company’s balance sheet of
two years to validate the movement of funds from the
previous financial year to the current year. In other
words, It compares the sources of inflow and outflow
of funds during the concerned accounting period and
analyses how it affects the working capital of an
organization It is essential determiner that shows how
funds are used. With the help of this statement
financial analysts, can assess the funds flow of an
organization in the near future
As this statement portrays the movement of funds
among several sources and their applications
DEFINITION
According to “FOULKE”
“It is a statement of sources and applications of funds
designed to analyze the changes in the financial
condition of a business enterprise between two dates”
NEED OF THE STUDY
The study helps to know the inflows and outflows
of funds at EN EN ELECTRICAL ENGINEERS
PRIVATE LIMITED Anantapur
SCOPE OF THE STUDY
The study on funds flow statement at EN EN
electrical engineers private limited is for the period of
5 years i.e, from 2017 to 2021
OBJECTIVES OF THE STUDY
To study the changes in the working capital of the
EN EN electrical engineers private limited
Anantapur
To analyze the funds from operations of EN EN
electrical engineers private limited Anantapur
To know the sources and applications of funds in
EN EN electrical engineers private limited
Anantapur
RESEARCH METHDOLOGY
The study is based on the secondary data only.
IJTSRD51919

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Secondary Data:
Secondary data which is collected through annual
reports, journal and website of the EN EN electrical
engineers private limited Anantapur
www.indiamart.com
TOOLS AND TECHNIQUES
Statement of changes in working capital
Statement of funds from operation
Sources and application statement
Pie charts
Bar graph
ANOVA
LIMITATIONS
The study is confined to one company only.
The study is limited for a period of 5 years
i.e,2016-2017 to 2020-2021
DATA ANALYSIS AND INTERPRETATION
STATEMENT OF CHANGES IN WORKING CAPITAL 2016-2017
Particulars Previous year 2016 Current year 2017 Increase Decrease
(A) Current assets
Inventories 19,53,864 16,53,194 3,00,670
Trade receivables 4,09,13,891 6,53,05,962 2,43,92071
Short term loans and advances 1,78,58,671 2,12,52,033 33,93,362
Cash and cash equivalents 95,359 118,430 23,071
Total assets 6,08,21,785 8,83,29,619
Particulars Previous year 2016 Current year 2017 Increase Decrease
(B) Current liabilities
Short term borrowings 10,99,987 11,41,724 41,737
Trade payables 1,62,16,270 2,03,54,822 41,38,552
Other current liabilities 1,73,29,094 1,98,93,112 25,64,018
Total liabilities 3,46,45,351 4,13,89,658
Working capital(A-B) 2,61,76,434 4,69,39,961
Net increase in working capital 2,07,63,527
ADJUSTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 2016-2017
Particulars Amount Particulars Amount
Depreciation 85,56,105 Balance b/d 1,12,522
Provision for taxation 12,72,691
Balance c/d 22,61,861 Funds from operation 1,19,78,135
1,20,90,657 1,20,90,657
INTERPRETATION
The working capital of 2017 has increased to the extent of Rs 20,76,352 than in 2016.
In the year 2016-2017 funds from operation are Rs 1,19,78,135
STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE PERIOD 2016-2017
Sources Amount Applications Amount
Funds from operation 1,19,78,135 Increase in working capital 2,07,63,527
Increasing long term loans 1,34,88,873 Purchase of fixed assets 33,68,861
Payment of taxes 5,84,188
Decrease of non-current liabilities 1,44,516
Payments 6,05,916
2,54,67,008 2,54,67,008

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INTERPRETATION
Sources of funds
In the year 2016-2017 the flow of funds were contributed by funds from operation is Rs 1,19,78,135 and
increasing term loans are Rs1,34,88,873
Applications of funds
In the year 2016-2017 the flow of funds were contributed by increasing working capital are Rs 2,07,63,527,
Purchase of fixed assets are Rs 33,68,861, Payment of taxes are Rs 5,84,188, decrease of noncurrent liabilities
are Rs 1,44,516 and Payments are Rs 6,05,916
The total circulation of funds are Rs 25467008
STATEMENT OF CHANGES IN WORKING CAPITAL 2017-2018
Particulars Previous year 2017 Current year 2018 Increase Decrease
(A) Current assets
Inventories 16,53,194 18,65,084 2,11,890
Trade receivables 6,53,05,962 9,47,33,384 2,94,27,422
Short term loans and advances 2,12,52,033 2,32,74,315 20,22,282
Cash and cash equivalents 1,18,430 3,76,298 2,57,868
Total assets 8,83,29,619 12,02,49,081
Particulars Previous year 2017 Current year 2018 Increase Decrease
(B) Current liabilities
Short term borrowings 11,41,724 8,90,443 2,51,281
Trade payables 2,03,54,822 333,71,356 1,30,16,534
Other current liabilities 1,98,93,112 3,16,40,430 1,17,47,318
Total liabilities 4,13,89,658 6,59,02,229
Working capital(A-B) 4,69,39,961 5,43,46,852
Net increase in working capital 74,06,891

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ADJUSTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 2017-2018
Particulars Amount Particulars Amount
Depreciation 77,67,060 Balance b/d 22,61,861
Provision for taxation 13,29,227 Refund of tax 18,14,138
Balance c/d 44,22,243 Funds from operation 94,42,531
1,35,18,530 1,35,18,530
INTERPRETATION
The working capital of 2018 increased to the extent of Rs74,06,891 than in 2017
In the year 2017-2018 funds from operation are Rs 94,42,531
STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE YEAR 2017-2018
Sources Amount Applications Amount
Funds from operation 94,42,531 Increase in working capital 74,06,891
Non trading Income 32,13,490 Purchase of fixed assets 169,172
Decrease of long term borrowings 36,37,304
Payment of taxes 5,89,423
Decrease of other long term liabilities 8,53,231
1,26,56,021 1,26,56,021
INTERPRETATION
Sources of funds
In the year 2017-2018 the flow of funds were contributed by funds from operation are Rs 94,42,531 and
increasing Non trading income is Rs 32,13,490
Applications of funds
In the year 2017-2018 the flow of funds were contributed by increase in working capital are Rs 74,06,891,
Purchase of fixed assets are Rs1,69,172 decrease of long term borrowings are Rs 6,37,304 Payment of taxes are
Rs 5,89,423 and decrease of other long term liabilities are Rs 8,53,231
The total circulation of funds are Rs 1,26,56,021

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STATEMENT OF CHANGES IN WORKING CAPITAL 2018-2019
Particulars Previous year (2018) Current year (2019) Increase Decrease
(A) Current assets
Inventories 18,65,084 30,58,654 11,93,570
Trade receivables 9,47,33,384 4,41,28,233 5,06,05,151
Short term loans and advances 2,32,74,315 4,10,53,677 1,77,79,362
Cash and cash equivalents 3,76,298 46,65,676 42,89,378
Total assets 120249081 92906240
Particulars Previous year (2018) Current year (2019) Increase Decrease
(B) Current liabilities
Short term borrowings 8,90,443 - 8,90,433
Trade payables 3,33,71,356 1,22,23,169 2,11,48,187
Other current liabilities 3,16,40,430 2,02,76,697 1,13,63,733
Total liabilities 6,59,02,229 3,24,99,866
Working capital(A-B) 5,43,46,852 6,04,06,374
ADJUSTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 2018-2019
Particulars Amount Particulars Amount
Depreciation 69,92,008 Balance b/d 44,22,243
Provision for taxation 4,73,428 Refund of tax 12,77,882
Balance c/d 10,88,175 Funds from operation 28,53,486
85,53,611 85,53,611
INTERPRETATION
The working capital of 2019 increased to the extent of Rs 60,59,522 than in 2018
In the year 2018-2019 funds from operation are Rs 28,53,486
STATEMENT OF SOURCES AN APPLICATIONS OF FUNDS FOR THE YEAR 2018-2019
Sources Amount Applications Amount
Funds from operation 28,53,486 Increase in working capital 60,59,522
Increase of long term borrowings 11,28,476 Payment of taxes 2,76,953
Sale of fixed assets 2,17,329 Decrease of other long term liabilities 38,57,195
10193670 10193670

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INTERPRETATION
Sources of funds
In the year 2018-2019 the flow of funds were contributed by funds from operation are Rs 28,53,486 Increase of
long term borrowings are Rs 11,28,476 Sale of fixed assets are Rs 2,17,329 and Non trading Income is Rs
59,94,379
Applications of funds
In the year 2018-2019 the flow of funds were contribute by increase in working capital are Rs 60,59,522,
Payment of taxes are Rs 2,76,953 and decrease of other long term liabilities are Rs 38,57,195
The total circulation of funds are Rs 1,01,93,670
STATEMENT OF CHANGES IN WORKING CAPITAL 2019-2020
Particulars Previous year (2019) Current year (2020) Increase Decrease
(A) Current assets
Inventories 30,58,654 19,34,302 11,24,352
Trade receivables 4,41,28,233 6,78,18,861 2,36,90,628
Short term loans and advances 4,10,53,677 4,73,88,194 63,34,517
Cash and cash equivalents 46,65,676 1,25,857 45,39,819
Total assets
9,29,06,240 11,72,67,214
Particulars Previous year (2019) Current year (2020) Increase Decrease
(B) Current liabilities
Short term borrowings 2,69,91,979 2,57,46,001 12,54,978
Trade payables 1,22,23,169 1,37,82,623 15,59,454
Other current liabilities 2,02,76,697 1,10,70,361 92,06,336
Total liabilities 5,94,91,845 5,05,98,985
Working capital(A-B) 3,34,14,395 6,66,68,229
Net increase in working capital 3,32,53,834
ADJUSTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 2019-2020
Particulars Amount Particulars Amount
Depreciation 2,94,986 Balance b/d 10,88,175
Provision for taxation 20,31,363 Refund of tax 37,02,103
Balance c/d 51,82,097 Funds from operation 27,18,168
INTERPRETATION
The working capital of 2020 increased to the extent of Rs 3,32,53,834 than in 2019
In the year 2019-2020 funds from operation are Rs 27,18,168
STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE YEAR 2019-2020
Sources Amount Applications Amount
Funds from operation 27,18,168 Increase in working capital 3,32,53,834
Increase of long term borrowings 1,66,55,139 Payment of taxes 2,50,118
Decrease of non current assets 62,68,955
Non trading Income 78,61,690
3,35,03,952 3,35,03,952

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INTERPRETATION
Sources of funds
In the year 2019-2020 the flow of funds were contributed by increasing of long term borrowings are Rs
1,66,55,139, decrease of non-current assets are Rs 62,68,955 and non-trading income is Rs 78,61,690
Applications of funds
The flow of funds were contributed by increasing in working capital are Rs 3,32,52,834 and payment of taxes
are Rss2,50,118
The total circulation of funds are 3,35,03,952
STATEMENT OF CHANGES IN WORKING CAPITAL 2020-2021
Particulars Previous year (2020) Current year (2021) Increase Decrease
(A) Current assets
Inventories 19,34,302 32,52,184 15,17,882
Trade receivables 6,78,18,861 9,41,28,471 2,63,09,610
Short term loans and advances 4,73,88,194 7,16,65,676 2,42,77,482
Cash and cash equivalents 1,25,857 60,02,965 58,77,108
Total assets 11,72,67,214 17,52,49,296
Particulars Previous year (2020) Current year (2021) Increase Decrease
(B) Current liabilities
Short term borrowings 2,57,46,001 3,71,06,019 1,13,60,018
Trade payables 1,37,82,623 1,22,63,809 15,18,814
Other current liabilities 1,10,70,361 3,44,31,300 2,33,60,939
Total liabilities 5,05,98,985 8,38,01,128
Working capital(A-B) 6,66,68,229 9,14,48,168
Net increase in working capital 2,47,79,939
ADJUSTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED
2020-2021
Particulars Amount Particulars Amount
Depreciation 60,24,771 Balance b/d 51,82,097
Provision for taxation 25,07,805 Refund of tax 20,31,363
Balance c/d 59,70,801 Funds from operation 72,89,917
1,45,03,377 1,45,03,377
INTERPRETATION
The working capital of 2021 increased to the extent of Rs 2,47,79,939 than in 2020
In the year 2020-2021 funds from operation are Rs 72,89,917
STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE YEAR 2020-2021
Sources Amount Applications Amount
Funds from operation 72,89,917 Increase in working capital 2,47,79,939
Increase of share capital 50,00,000 Purchase of fixed assets 3,48,885
Increase of long term borrowings 91,15,981 Payment of taxes 6,75,327
Non trading Income 43,98,253
2,58,04,151 2,58,04,151

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INTERPRETATION
Sources of funds
In the year 2020-2021 the flow of funds were contributed by funds from operation are Rs 72,89,917, increase in
share capital are Rs 50,00,000 and long term borrowings are Rs 91,15,981 and Non trading income is Rs
43,98,253
Applications of funds
The flow of funds were contributed by increasing in working capital are Rs 2,47,79,939 and purchase of fixed
assets are Rs 34,88,85
The total circulation of funds are Rs 2,58,04,151
STATEMENT OF CHANGES IN WORKING CAPITAL
year Increase/Decrease Amount
2016-2017 Increase 2,07,63,527
2017-2018 Increase 74,06,891
2018-2019 Increase 60,59,522
2019-2020 Increase 3,32,53,834
2020-2021 Increase 2,47,79,939

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INTERPRETATION
From the bar graph it shows that in 2016-2017 working capital has increased, in 2017-2018 the working capital
has decreased and it follows the same in 2018-2019, then in 2019-2020 working capital has increased and again
it slightly decreased in 2020-2021,so there is a fluctuations in working capital
FUNDS FROM OPERATION
YEAR AMOUNT
2016-2017 1,19,78,135
2017-2018 94,42,531
2018-2019 28,53,486
2019-2020 27,18,168
2020-2021 72,89,917
INTERPRETATION
In 2016-2017 there is an increased in funds from operation, it decreased for the year of 2017-2018 and it follows
the same in 2018-2019 and 2019-2020 where as in 2020-2021 it again increased in funds from operations
FINDINGS
In the year 2016-2017 the flow of funds were
contributed by funds from operation
Rs1,19,78,135 increasing term loans are
Rs1,34,88,873 and working capital
Rs2,07,63,527. The total circulation of funds are
Rs2,54,67,008
In the year 2017-2018 the flow of funds were
contributed funds from operation are
Rs94,42,531, purchase of fixed assets are
Rs1,69,172 and Increased in working capital are
Rs74,06,891 The total circulation of funds are
Rs1,26,56,021
In the year 2018-2019 the flow of funds were
contributed by increase of long term borrowings
are Rs11,28,476, payment of taxes are Rs2,76,953
The total circulation of funds are Rs1,01,93,670
In the year 2019-2020 the flow of funds were
contributed by increase of long term loans
Rs1,66,55,139 and decrease of non-current assets
are Rs62,68,955. The total circulation of funds are
Rs3,35,03,952
In the year 2020-2021 the flow of funds were
contributed by increase in share capital
Rs50,00,000 long term borrowings are
Rs91,15,981 The total circulation of funds are
Rs2,58,04,151
SUGGESTIONS
Financial measures should be taken in order to
maintain the adequate working capital without
any fluctuations
Trading activity should be operated effectively to
generate to more funds
It can be suggested that better utilization of
sources of funds for getting maximum benefits.
CONCLUSION
Funds were utilized for financing the working capital
requirements, except for the first year the study
period is observed that the funds from operations are
more fluctuated, it generated in application of total
funds. The study revealed the trend of sources and
application of funds in respect of increase and
decrease of long-term borrowings and payment of
taxes
BIBLOGRAPHY
[1] I.M.PANDEY- Financial Management
[2] PRASANNA CHANDRA – Financial
Management
[3] MR.KHAN & PK JAIN - Financial
Management